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2016-10-19 10:47:05

STX

Seagate

$35.34

0.33 (0.94%)

10:47

10/19/16

10/19

10:47

10/19/16

10:47

Seagate could be pressured by further HDD TAM contraction, says Rosenblatt

Rosenblatt continues to have a negative long-term view on the HDD sector in general due to the cannibalization by flash. The firm believes Seagate can outpace consensus expectations for the upcoming December quarter, but in the medium to long-term, expects the industry expansion of lower cost 3D NAND capacity and with the increased adoption of lower cost 3bit per cell will result in further cannibalization in many more segments of the HDD market. The firm believes this further HDD TAM reduction will result in future earnings headwinds for Seagate possibly starting from mid-2017.

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STXSeagate

$35.34

0.33 (0.94%)

10/11/16

10/11/16UPGRADETarget $43Strong Buy

Follow-up: Seagate upgraded to Strong Buy from Buy at Needham

As previously reported, Needham upgraded Seagate to Strong Buy and raised its price target to $43 from $39. Analyst Richard Kugele said Seagate is benefiting from a generally stable to improving demand environment at the very time the company is restructuring its capacity and OPEX model for the changing environment dominated by CSPs and high-capacity drives. He believes investors will be beneficiaries of these dynamics as they flow through Seagate's model

Pacific Crest says that Intel's (INTC) data center results and commentary were "modestly disappointing," as enterprise demand for the company's data center products was "weak," according to the firm. The firm thinks that the negative enterprise results are "modestly negative for stocks with enterprise exposure, including Micron (MU), Seagate (STX) and Western Digital (WDC)."